Business
Ansys To Be Acquired By Synopsys For $35 Billion
(CTN News) – On Tuesday, Synopsys announced it would acquire Ansys, a software company that specializes in engineering and product design, for approximately $35 billion in cash and stock.
A major acquisition in the technology sector has recently been announced.
As part of the agreement, Synopsys will pay roughly $390 per share in consideration: $197 per share in cash and approximately one-third of a Synopsys share for each Ansys share. If regulatory approvals and shareholder approvals are received, the deal is expected to close in the first half of 2025.
After a 12% decline since The Wall Street Journal reported in December that Synopsys and Intel were in advanced talks, Synopsys shares rose 3% on Tuesday morning. In the same period since December, Ansys shares gained more than 14%, despite a 5% decline.
After the merger, Ansys shareholders will own 16.5% of Synopsys, according to Synopsys CEO Sassine Ghazi. A $16 billion debt facility will contribute to the financing of the deal, Synopsys announced in a release. A further $3 billion of nonequity consideration will be provided by Synopsys.
The company reported $1.4 billion in cash and cash equivalents at the end of its third quarter ended October 31, 2023.
Shelagh Glaser, Synopsys’ CFO, explained that the deal will not be immediately accretive for at least a year after closing.
Ajei Gopal, Ansys CEO, would continue to play an important role in the combination, according to Ghazi.
“This is the logical next step in our successful seven-year partnership with Ansys. I look forward to working with Ajei and the talented Ansys team to benefit our customers, shareholders, and employees.”
Recent months have seen several deals close, including Microsoft’s acquisition of Activision Blizzard and Broadcom’s purchase of VMware. In September, Cisco announced its acquisition of Splunk for $28 billion, the company’s largest acquisition to date.
The advisory firms Evercore and Cleary Gottlieb Steen & Hamilton provided advice to Synopsys. Ansys received legal advice from Qatalyst Partners, Skadden & Reed and Goodwin Procter.
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